Steel Asia Case Study

STEEL ASIA MANUFACTURING CORPORATION
COMPANY DESCRIPTIONSteel Asia Manufacturing Corporation (SAMC), a joint venture with TATA Steel from India, is located in Bulacan in the Philippines and produces reinforcing steel bars (also referred to as rebar) for use in construction. The plant was commissioned in 1996 and currently has 400 employees. Annual production is 360,000 tons of steel bars compared to its 400,000 tons annual designed capacity, which is mostly consumed by the domestic market. The company participated in the project to sustain their effort to improve the operation, cut down on production cost through energy efficiency and cleaner production and prepare for an application for Integrated Management System (ISO 9001, ISO 14001 and OSHAS 18000) certification.

PROCESS DESCRIPTION§ Preheating: Steel billets are received and charged directly in a re-heat walking hearth furnace through the charging door of the furnace. They are reheated for 75 minutes to 1100º using Bunker C (Type #6) fuel oil. The furnace can reheat billets at a maximum rate C of 65 tons per hour. Rolling: Once billets reach the required temperature for rolling, they leave the furnace through the discharging doors and are rolled along a series of 18 tandem (horizontal/vertical) continuous rolling mill stands to obtain the desired size and shape. Each rolling stand is controlled throughout the process by a computerized control system. Cutting and Testing: The bars are then cut to lengths required by customers. Samples are subjected to physical, mechanical and chemical tests in a fully equipped laboratory certified to ISO 17025. Instruments used for quality control include a spectrometer and two universal testing machines. Bundling and Tagging: Finally, the product is then bundled and tagged before being placed in a storage facility.

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METHODOLOGY APPLICATIONThe draft Company Energy Efficiency Methodology was used as a basis for the plant assessment to identify and implement options to reduce energy and other materials and wastes. Some of the interesting experiences are: § Task 1b –Form a team and inform staff The company is preparing for an Integrated Management System Certification and recently created an Energy Management Committee that oversees the energy costs and savings. This committee also became the Team for the GERIAP project so that efforts are integrated in the wider management system. Lesson learnt: By using an already existing team as the Team for the energy assessment it is easier to integrate energy management into wider business management systems later. § Task 2d –Quantify inputs and outputs and costs to establish a baseline The company has no water metering system or any means to measure the allocation of water used by different production processes. This makes it difficult to establish a water baseline from which to measure water savings after the implementation of water conservation options. Lesson learnt: It is not always possible to establish a baseline for resource and energy consumption.

§ Step 5- Implementation and monitoring of options Implementation: The company modified some of the options recommended for better monitoring of operation such as use of steel curtain, which have longer life, and use of water metering system with more accurate results. Lesson learnt: If external facilitators are involved it is important that the company checks if any modifications of options are needed, as they know the plant better than anyone Monitoring: The energy savings and greenhouse gas emission reduction resulting from the insulation of the furnace was calculated based on measurement conducted on surface wall temperature. If these savings would have been calculated based on their production data, the actual consumption of bunker fuel would have increased due to a...

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Being one of the main incubator in the Philippines
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